House-sharers pay high price for cover

Experienced house-sharers will know the type: the person who is so uptight about keeping their belongings separate that they stick labels with their name on them to their groceries. But in the event of a break-in, a firm grasp on who owns what isn't going to matter too much. The chances are nobody's possessions will be insured anyway.

"When you take out a mortgage, insuring the property and its contents is something you do almost automatically," says Ms Aisling Cunningham, agency manager for Endsleigh Insurance. "But there are a lot of young professionals out there who are renting accommodation. They have their own goods, their own hi-fi and DVD, and a lot of the time they furnish the place from top to bottom."

Tenants often mistakenly believe the landlord's policy will cover their possessions, she says.

In Ireland, it can be tricky to find an insurance company prepared to provide cover for a tenant's personal belongings, but it's not the entire rental sector that is affected.

For a couple renting a purpose-built apartment, getting a quote should be straightforward. "It's when there's an old Georgian house or office in Rathmines or Rathgar that's been converted into 12 bedsits, that's when the problem arises," says Mr Brian Pilkington, new business executive for Getcover.com.

In 2001, the insurance brokers who run Getcover.com offered contents insurance to people who were renting shared accommodation, but then the British underwriter pulled out of Ireland. "We're actively seeking a new insurer to take it on," says Mr Pilkington.

Complications with claims deter many from entering the market. "In rental houses, less care might be taken about locking doors and they wouldn't have alarms installed as often. Then there is the issue of who owns what," explains Mr Seán Burke, managing director of Galway-based brokers Burke Insurances.

Policies will usually cover personal possessions kept in the policy-holder's room, not what is left in the shared area of the house.

"I'm surprised there hasn't been more take-up, but the premiums are not for nothing, relative to what they would be if you had your own apartment," says Mr Burke. A premium of €100 would cover up to €15,000 in an owner-occupied apartment, but just €5,000 in rented shared accommodation.

As part of its package of new services, Daft.ie will offer cover through Burke Insurances to users who want to protect their valuables from theft and malicious damage.

To insure €3,000 worth of contents, premiums cost €87 in Dublin city and county and €76 in all other areas, including Government tax and a set-up fee of €25.

Flatmate possessions insurance at Endsleigh Insurance starts at €78.50 in Dublin city and county and €60 in all other areas for €3,750 worth of contents. It is in the student sector where the company has blanket coverage, with more than 140 offices and 100,000 policy-holders.

This September, the company is teaming up with Findahome.ie to promote the concept of student and flatmate possessions insurance here.

"A lot of students here have laptops and other risk items. If they're studying photography, it's their cameras; if they're musicians, it might be their guitars," says Ms Cunningham. "They are a target for burglars, especially freshers coming in."

Premiums start at €29.50 for designated college residences and €49 for shared accommodation. This will cover €2,500 worth of contents kept within the policy-holder's room, although no single item can exceed 30 per cent of the total premium. Covering items over vacation periods will give rise to a top-up of €11.50 for students in shared accommodation.

Insuring computer equipment, often the most valuable possession students would want to protect, will add significantly to the premium. For example, a computer worth €2,500 would cost €60 to insure in a designated college residences and €75 in shared accommodation. There is also an additional "all risks" option, covering items that would be regularly taken outside the room.